2015 (10) TMI 2101 - AT - Service Tax

Manpower Recruitment or Supply Agency service The appellant received consideration on piece rate basis for providing certain fabrication work by deputing workers to the factory Appellant contends consideration received for items fabricated and not for workmen deputed Appellant states that activity in issue does not fall within the ambit of the Manpower Recruitment or Supply Agency Service Appeal allowed in the light of the law and Impugned order is unsustainable Decided in favour of the assessee.

Summary

Issues:
- Confirmation of service tax demand for providing certain fabrication work on a piece rate basis
- Applicability of Manpower Recruitment or Supply Agency services
- Comparison with earlier decisions in similar cases

Analysis:
The judgment pertains to an appeal against an order confirming a service tax demand for providing fabrication work on a piece rate basis. The appellant received consideration for items fabricated by its employees, not for workmen deputed/supplied to the client. The Tribunal referred to earlier decisions in similar cases, such as Divya Enterprises, Ritesh Enterprises, and S.S. Associates, which concluded that the activity in question does not fall under Manpower Recruitment or Supply Agency services. The Tribunal allowed the appeals in those cases based on this reasoning.

In light of the precedents and legal principles established in the earlier decisions, the Tribunal found the impugned order unsustainable and set it aside. Consequently, the appeal was allowed, and no costs were imposed on the appellant. This judgment highlights the importance of analyzing the nature of services provided to determine the applicability of specific tax regulations, such as the Manpower Recruitment or Supply Agency services, and the significance of precedent in legal decision-making.